Saturday, April 28, 2012

The Special Committee of SBGB wishes to announce that consistent with the disclaimers raised by the auditors pertaining to the financial statements of the Company for the financial year ended 31 October 2011 as announced on 29 February 2012, and in the light of the findings of the forensic accountants taken as of to-date on the lack of reliability of the financial statements of the Group, it has undertaken upon itself to establish the financial position of the SBGB Group as at 29 February 2012, which was reconstructed based on information available to the Special Committee up to the date of this announcement. The financial position of the SBGB Group as at 29 February 2012 was approved by the Special Committee on the 22 April 2012.Details of the financial position as at 29 February 2012, is attached as Appendix 1.Based on the information available as at to-date, the Special Committee does not foresee any further material adjustments to the accounts of the SBGB Group.A reconciliation between the financial position as at 29 February 2012 and as at 31 October 2011, together with the underlying explanations as to how the differences occur, is also attached as Appendix 2.

As previously announced, the forensic investigation report is expected to be finalized by 29 May 2012.

Based on the financial position of the SBGB Group as at 29 February 2012, the Special Committee of SBGB also wishes to announce that subject to the approval of the relevant authorities, creditors and shareholders, the Group intends to seek the support of its bank lenders, major creditors and major shareholders to undertake a PCDRS. In this connection, the Special Committee of SBGB wishes to announce that Appendix 1 and the PCDRS will be or have been forwarded to the creditors and shareholders of the SBGB Group for discussion purposes.The PCDRS essentially envisages a proposed capital reduction, a proposed rights issue, a proposed debt settlement which incorporates a cash repayment, the terming out of part of the liabilities, debt to equity conversion and waiver of debts that are no longer supported by assets, and the proposed liquidation of subsidiary companies that are no longer essential to the future operations of the SBGB Group.

The full particulars of the regularisation plan as required under Practice Note 17 will be announced by a Principal Adviser to be appointed, in due course, after taking into consideration the feedback of the bank lenders, major creditors and major shareholders of the Group on the PCDRS.

This announcement is dated 27 April 2012.

Attached is the balance sheet: SilverBird BS.pdf

Now, I wanted to see more in detail on what has changed in the balance sheet, ie I wanted to see how unreliable the previous financial statement released by the company.

Here is the screen shot of the balance sheet posted last night by Silver Bird.

The changes were mentioned in detailed in the other pdf file: Silver Brid Financial Position reconciliation.pdf

The value of the property and plant were adjusted down by 98 million!!!! (The notes below mentioned 'assets that cannot be physically identified!!! WTH!!!!!! Did the assets even existed in the first place??!!! )

Cash was adjusted. Where did the Moola go?

Inventory was less. (The notes below state "obsolete inventories and inventories that cannot be physically identified." !!!! Again did these inventories even existed in the first place? )

Accounts payable increased. And the total borrowings increased!!!!

Holy cow!!!

And the following were the notes stated in that pdf file attached.

Notes:

1. Impairment to fair value, after taking into consideration additional depreciation since 31 October 2011, write down of assets that should have been expensed to profit & loss as opposed to being capitalized, movements in acquisitions and disposals, write-offs of assets that cannot be physically identified, write backs of assets that were not previously taken up, and possibly adjustments to assets that may have been suspected to be capitalized above fair market value arising partly from the preliminary forensic investigation.

2. In view of the net liabilities position of the Group, goodwill is impaired in totality.

3. Adjustments have been made for movements in the ordinary course of business between 31 October 2011 and 29 February 2012, and which may relate to the losses incurred during the said period, provisions for doubtful debts and suspected financial irregularities arising from the preliminary findings of the forensic investigation

4. Adjustments have been made for movements in the ordinary course of business between 31 October 2011 and 29 February 2012, and which may relate to the losses incurred during the said period, and after reconciling for transactions relating to suspected financial irregularities arising from the preliminary findings of the forensic investigation

5. Adjustments have been made for movements in the ordinary course of business between 31 October 2011 and 29 February 2012, and which may relate to the losses incurred during the said period, and for obsolete inventories and inventories that cannot be physically identified.

6. Adjustments have been made for movements in the ordinary course of business between 31 October 2011 and 29 February 2012, and which may relate to the losses incurred during the said period, and for provisions relating tosuspected financial irregularities arising from the preliminary findings of the forensic investigation

7. Increased borrowings can be related to additional net borrowings of the Group between 31 October 2011 and 29 February 2012. Certain facilities, such as bonds, were paid off, whilst additional borrowings were drawn down, in particular bankers acceptances, during the period

The bread and confectionary maker’s independent directors formed a special committee to run the daily affairs of the bread and confectionary maker after suspending group managing director-cum-founder Datuk Jackson Tan Han Kook, executive director Ching Siew Cheong and general manager for accounts and finance Lai Poh Mei on Feb 24.

And AirAsia never update their website information, and never (dare not to) to officially tell the customer about it. Until today 6 April 2012, http://www.airasia.com/my/en/latestnews/fuelsurcharge.html still stated RM 10 in their website. I made 2 bookings yesterday, but it started to charge RM 15 already!

And that's a crying shame!

How can AirAsia be making fuel charges without updating their website????

They, AirAsia, had staged war against Malaysia Airport for the airport tax hike!

And here they are, AirAsia, charging NEW fuel surchages without updating their own website.

PETALING JAYA: Ng Huan Tong, managing director of ornamental fish breeder Xian Leng Holdings Bhd, resigned yesterday amid accounting irregularities in the group’s books that could reach RM90.7 million.
According to Xian Leng’s filing with Bursa Malaysia yesterday, Ng, the group’s majority shareholder, has resigned from the top post as the audit investigation of the group’s capital expenditure is in the final stages.

“Coupled with the deteriorating financial results of the group for the past few years, I believe it would be prudent for me to relinquish my position as the managing director of Xian Leng voluntarily of my own accord,” said Ng.

He has also resigned from Xian Leng’s remuneration committee and as chairman of the group’s employees share option scheme (Esos).

Ng and his wife Lim Wan Hong hold 46.5% of Xian Leng’s paid-up capital. It is believed that Ng and Lim hold more than 51% of Xian Leng via friendly parties. Replacing him in both positions is Kuan Kai Seng, a 38-year-old chartered accountant, who gained experience in carrying out statutory audits on private and public limited companies when he was with Ernst & Young between 1999 and 2002.

According to an observer, the group’s board of directors has been trying to oust Ng as the MD since the accounting issue was discovered, but failed due to his majority ownership of Xian Leng.

The Edge weekly reported last weekend that a draft report by PricewaterhouseCoopers Advisory Services Sdn Bhd (PwCAS) alleged that Xian Leng cannot account for the RM90.7 million in capital expenditure to build various fish farms between FY05 and FY08.

It was reported that Xian Leng’s board of directors are aware of the “missing” sum, but it did not give consent for the expenditure.

Xian Leng has provided for the amount in its accounts, which contributed to losses of RM56.23 million in FY12 ended Jan 31, on RM14.94 million in revenue.

Four contractors were allegedly awarded jobs without tenders or competitive bids, and three out of the four were not registered businesses when they issued invoices to Xian Leng, The Edge reported.

The draft also revealed that all four contractors were sole proprietors and secured RM85.9 million worth of jobs out of the RM90.7 million unaccounted for capex. The rest of the amount was shared among 52 other contractors.

On March 30, Xian Leng announced to Bursa Malaysia that the expected completion of a special audit by PwC had been delayed to end-April from end-March this year.

In October 2011, the group announced that “there are possibly some financial irregularities pertaining to capital expenditure of RM17.36 million as stated in the company’s financial statements, the nature and extent of which cannot be accurately determined at this juncture”.

In February, Datuk Chin Seak Huat emerged as a substantial shareholder with 3.65 million shares or 5.05% equity interest. He has since increased his shareholding to 5.36% or 3.87 million shares.

KUALA LUMPUR (April 5) : The special audit on XIAN LENG HOLDINGS BHD [] revealed financial irregularities in its fish farm development capital expenditure amounting to RM90.7 million of which a total of RM85.7 million was disbursed under "questionable circumstances".

In a statement to the exchange on Thursday, Xian Leng which undertakes commercial breeding of ornamental fish, said the auditor PricewaterhouseCoopers Advisory Services Sdn Bhd (PwC), had disclosed that there was lack of evidence that the RM85.7 million portion was paid to four contractors, as indicated in Xian Leng's records during financial years 2005 to 2008.

According to the audit findings, the cheque payments were authorised by on Xian Leng managing director Ng Huan Tong, while signatories to the cheques were two former board members: Chua Chong Seng and Lim Wan Hong.

Lim is the spouse of Ng, who had voluntarily resigned from his position last Tuesday as PwC finalised its investigation. Xian Leng said its board is deliberating on the next course of action, which may include lodging a police report.